Government shutdown? Obama tries to defuse chatter

By BYRON TAU

12/15/2011 12:34 PM EST

Speaking to reporters Thursday, President Obama tried to soothe tensions over a possible looming government shutdown.

The White House and Congressional Republicans have been at odds over two pieces of legislation -- and both sides have dug in over their competing priorities. The impasse could, in theory, result in a government shutdown. The White House has threatened to veto the current Republican tax cut bill while calling the bipartisan spending bill problematic. Without either a long-term spending bill or a short-term emergency measure, the government runs out of funding after Friday.

"There's no reason the government should shut down over this," Obama said at an event with several health care workers. "None of the workers who joined us here today can afford a $1000 dollar tax cut."

"Congress should not and cannot go on vacation before they have made sure that working families aren't seeing their taxes go up by $1000," Obama said, referring to the payroll tax that the White House has been leaning on Congress to pass.